SKODA is planning to cash in on the Chancellor's recent VAT reduction by slashing the price of its Octavia family-sized model.
The company says it is going one better by scrapping VAT on the current Octavia altogether.
The offer will run only until the end of December when a new Octavia goes on sale.
It enables Skoda to reduce Octavia prices by up to £3,000. The 17.5 per cent reduction not only applies to the car but to accessories as well.
That means the more money is spent, the more is saved, which makes the most expensive luxury L&K versions, the 4x4 Scout and the high-performance vRS models the best bargains.
Before the VAT changes the Octavia range was priced from £11,145 to £20,390.
When the new models arrive in January they will have new headlights and front fog lights, new folding door mirrors plus body-coloured bumpers and side mouldings.
There is a partially redesigned interior with a range of new steering wheels, new stereo systems and new upholstery.
The revamped range takes the S, SE and Elegance naming system from the latest Superb and comes with new alloy wheels and two new paint colours of blue and green metallics.
A new 1.4 TSI 122bhp engine will replace the current 1.6 FSI 115bhp engine whilst the 2.0 FSI 200bhp engine with DSG transmission will be introduced on the Octavia vRS.
Prices will range from £11,580 for the 1.4-litre 80bhp petrol model with manual transmission to £21,200 for the vRS 2.0 TDi CR.
Diesel models will cost from £14,190 for the 1.9 TDI PD 105bhp rising to £22,680 for the L&K 2.0 TDI PD 140bhp DSG.